Order Now - Harvard Business (HBR) Case Study Solution Order Now - Blue Prism Group Plc Porter 5 Forces Analysis & Industry Analysis Blue Prism Group Plc is listed at London Stock Exchange (LSE) and have a market cap $ 688.67 million (USD). Over the years Blue Prism Group Plc has redefined the ways of doing business in Technology. Brief overview of Blue Prism Group Plcīlue Prism Group Plc is one of the leading firms in the Technology. Blue Prism Group Plc managers can use Porter Five Forces to understand how the five competitive forces influence profitability and develop a strategy for enhancing Blue Prism Group Plc competitive advantage and long term profitability in Technology industry. Porter Five Forces Analysis is a strategic management tool to analyze industry and understand underlying levers of profitability in a given industry. B.P.Strategic Management Essays, Term Papers & Presentations.They could produce strong growth in a world that looks set to become increasingly reliant on machines across a broad range of everyday tasks. Should it fail to be taken over, and its shares shed their current premium following recent news, it may offer long-term growth opportunities within a diverse portfolio of AI stocks. Therefore, it may be prudent to wait and see how the company’s takeover talks progress. Its share price could remain extremely volatile in the short run depending on news flow that is ultimately impossible to accurately predict. As such, buying the company’s shares now, following their recent surge, could be a high-risk strategy for any investor. As with any discussions, there is no guarantee that an offer will be made. Investment potentialĬlearly, such risks do not appear to be impeding takeover interest in Blue Prism. This may weigh on the AI industry’s growth rate over the long run. There may also be increasing ethical concerns, with the growing use of robots to replace human capital potentially leading to fewer job opportunities. New technology could supersede existing technology, thereby making it obsolete over a relatively short period. In addition, the AI industry is, by definition, a rapidly evolving space. Indeed, Blue Prism is expected to remain loss-making business, albeit on a reducing scale, over the next three financial years. Although this represented a £10.2m reduction in operating losses versus the prior year, its lack of profitability remains a risk facing investors. For example, it made an operating loss of £81.6m from revenues of £141.4m in the previous financial year. Moreover, the company is forecast to post a 19% annualised growth rate in sales over the next three financial years.ĭespite strong sales growth, the company remains a loss-making entity. This follows a 40% growth rate in the latest full year. The firm reported a 24% rise in revenue in the first half of the current year. Indeed, the global market for ‘narrow’ AI, where robots perform a specific task such as in administrative work, is forecast to grow by around 33% per year to 2026.Īn encouraging industry growth rate is evident in Blue Prism’s recent sales performance. Its capacity to reduce costs and boost profitability across a wide range of industries could mean it has an encouraging outlook. It has over 2,000 customers, with 30% of them from the Forbes Global 2,000. The company’s offering has so far been well-received. They allow human workers to focus on higher-value tasks, while leaving their robot ‘peers’ to conduct administrative and other back-office tasks that may require less skill. This essentially means that it provides autonomous multi-skilled software robots that can perform a range of repetitive tasks across a variety of industries. The firm focuses on Robotic Process Automation software. Find out moreOf course, Blue Prism’s AI offering could make it an enticing proposition to a wide range of investors.
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